Exercise 9-14 On July 1, 2020, Blue Spruce Aggregates Ltd. purchased 5% bonds to allocate unamortized discount or premium. The bonds are accounted for using the FV-OCI model with recycling. Blue Spruce has a calendar year end. The fair value of the bonds at December 31, 2020 and 2021, was $57,017 and $6,205, respectively. Assume fair value adjustments are recorded at year end only. Immediately after collecting interest on December 31, 2021, the bonds were sold for $56,205. Prepare the journal entry at the date of the bond purchase. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Round answers to 0 decimal places, e.g. 5,275.) Date Account Titles and Explanation Debit Credit July 1, 2020 SHOW LIST OF ACCOUNTS LINK TO TEXT Prepare a bond amortization schedule to December 31, 2021. (Round answers to o decimal places, e.g. 5,275.) Schedule of Interest Revenue and Bond Premium Amortization Effective-Interest Method Date Cash Received Interest Revenue Premium Amortized Amortized Cost of Bonds July 1, 2020 Dec. 31, 2020 June 30, 2021 Dec. 31, 2021 SHOW LIST OF ACCOUNTS

Exercise 9-14 On July 1, 2020, Blue Spruce Aggregates Ltd. purchased 5% bonds to allocate unamortized discount or premium. The bonds are accounted for using the FV-OCI model with recycling. Blue Spruce has a calendar year end. The fair value of the bonds at December 31, 2020 and 2021, was $57,017 and $6,205, respectively. Assume fair value adjustments are recorded at year end only. Immediately after collecting interest on December 31, 2021, the bonds were sold for $56,205. Prepare the journal entry at the date of the bond purchase. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Round answers to 0 decimal places, e.g. 5,275.) Date Account Titles and Explanation Debit Credit July 1, 2020 SHOW LIST OF ACCOUNTS LINK TO TEXT Prepare a bond amortization schedule to December 31, 2021. (Round answers to o decimal places, e.g. 5,275.) Schedule of Interest Revenue and Bond Premium Amortization Effective-Interest Method Date Cash Received Interest Revenue Premium Amortized Amortized Cost of Bonds July 1, 2020 Dec. 31, 2020 June 30, 2021 Dec. 31, 2021 SHOW LIST OF ACCOUNTS

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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